Opel/Vauxhall CEO Nick Reilly is predicting calmer industrial relations now that a series of far-reaching cost-cutting measures has finally been achieved.
Swingeing capacity cuts of 20% plus a series of initiatives to curb employee benefits have been inked by unions – but only recently.
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“We had to negotiate with the unions to get the 20% reduction and we really finished those negotiations only very recently [and] completely signed them off,” Reilly told just-auto at the Paris show.
“They were very complicated – employees are contributing EUR260m [in] cost reductions throughout Europe – for example, no pay increases.”
And Reilly added half of the employees at Opel’s Antwerp plant scheduled for closure had already left, with the remaining staff due to leave by December.
Yesterday (30 September) marked the deadline for potential investor bids for the Antwerp site and the Opel chief confirmed there were two candidates interested in continuing car production at the Belgian plant.
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By GlobalDataReilly characterised current industrial relations with those of six months ago as “like night and day”.
The Opel CEO conceded there had been “very, very low morale” while the company went through its “trauma” although a series of open days was being held to drive employee motivation.
“People think the outlook for the company is much better throughout Europe,” he said.
